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Meta Platforms Inc. (Nasdaq: META) and Microsoft (Nasdaq: MSFT) have reported impressive earnings for the first quarter, surpassing Wall Street’s expectations. Meta’s earnings were buoyed by a significant rise in advertising revenue and advancements in artificial intelligence, resulting in earnings of $16.64 billion and a 16% increase in revenue to $42.31 billion. Microsoft continued its streak of exceeding expectations, reporting $70.07 billion in revenue and highlighting its substantial investments in AI, with plans to allocate $80 billion this fiscal year.

Despite these successes, the broader tech industry faces challenges due to economic downturns and the trade policies of the Trump administration, which have introduced uncertainty into the market.

Companies like Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), and Tesla (Nasdaq: TSLA) are navigating these complex waters, with Tesla notably experiencing a drop in profits. Microsoft has expressed its commitment to contest any potential governmental orders to halt operations in Europe, underscoring the ongoing tensions in international trade.

Meta, Microsoft Report Robust First-Quarter

Meta Platforms Inc. reported robust first-quarter earnings, largely driven by a surge in advertising revenue and strides in artificial intelligence technology. The company’s earnings reached $16.64 billion, with a notable 16% increase in revenue, amounting to $42.31 billion.

Meanwhile, Microsoft continued to exceed Wall Street’s expectations for the fourth consecutive quarter, reporting $70.07 billion in revenue. The tech giant is heavily investing in AI, with plans to allocate $80 billion to this area in the current fiscal year, underscoring its commitment to maintaining its competitive edge in the technology sector.

MSFT, META Gain in Today’s Trading Session

The stock market has responded positively to these earnings reports, particularly for Microsoft. On May 1, 2025, Microsoft’s stock opened at $431.11 and reached a current price of $432.76 by 09:50 EDT, after a previous close of $395.26. The stock experienced a day high of $436.99 and a low of $430.12. With a market capitalization of $3.217 trillion, Microsoft’s stock is considered a strong buy, with a recommendation mean of 1.43333. The stock’s price target ranges from a high of $650.00 to a low of $415.00, with a mean target price of $495.26.

In comparison, Meta Platforms also saw an increase, opening at $592.075 and reaching a current price of $575.045. The stock’s performance is supported by a strong market cap of $1.45 trillion and a recommendation mean of 1.47059.

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